Yelp Stock Surges After It Delivers Great Q4 Financials

AP Photo/Kathy Willens
Yelp just announced its Q4 earnings and the company beat on revenues and hit on earnings per share. The stock is up by about 8% in after-hours trading because of the company's solid financials.

Here's what the company delivered:

Revenues: $70.7 million

Earnings per share: -$0.03

Here's what analysts had predicted:

Revenues: $67.27 million

Earnings per share: -$0.03

Yelp's average monthly unique visitors grew by 39% from 86 million Q4 2012 to 120 million Q4 in 2013. Year over year, its number of cumulative reviews grew by 47%, from 36 million to 53 million, and its number of active local business accounts grew 69% from 40,000 to 67,000. Yelp sees a full year revenue of between $353 and $358 million.

Yelp also saw a big increase in unique visitors from mobile from 33 million to 53 million year over year. The company is steadily becoming more mobile-focused. More than half of its traffic comes from mobile and in 2013, 30% of its reviews came from mobile.

On its earnings call, an investor asked Yelp about the $4 million that the company has in cash, and Yelp CFO Rob Krolik said that it would be keeping its eyes peeled for other strategic acquisitions that would help it to continue to close the loop with businesses (Yelp acquired online reservations startup SeatMe in July). Ideally, Yelp wants to give users the opportunity to do more through the app-whether that' means making a reservation or buying a product-while giving businesses the ability to see that their Yelp postings are having an impact on their business.